UL Solutions Reports Strong Q4 & Full-Year 2025 Results, Raises Dividend, and Provides Positive 2026 Outlook
Summary
UL Solutions reported strong Q4 and full-year 2025 financial results, exceeding guidance with robust organic growth and significant adjusted profit expansion, while also raising its quarterly dividend and providing a positive 2026 outlook.
Key Events
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Strong Q4 and Full-Year 2025 Financial Performance
UL Solutions reported Q4 2025 revenue of $789 million (+6.8% year-over-year, 5.7% organic) and full-year 2025 revenue of $3,053 million (+6.4% year-over-year, 6.2% organic). Adjusted EBITDA for Q4 increased 28.4% to $217 million, with full-year Adjusted EBITDA up 20.7% to $792 million. Adjusted Diluted EPS for Q4 rose 8.2% to $0.53, and full-year Adjusted Diluted EPS increased 17.1% to $1.99.
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Increased Quarterly Dividend
The company's board of directors approved an 11.5% increase in the quarterly dividend to $0.145 per share for the first quarter of 2026, payable on March 12, 2026.
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Positive 2026 Growth Outlook
UL Solutions introduced a 2026 outlook expecting mid-single digit constant currency organic revenue growth and Adjusted EBITDA margin improvement to between 26.5% and 27.0%, signaling continued business momentum.
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Strategic Divestiture of Software Business
The company signed a definitive agreement to sell its Employee Health and Safety software business, expected to close in Q2 2026, to focus on its core ULTRUS™ software portfolio.
Analysis
UL Solutions Inc. delivered robust financial results for the fourth quarter and full-year 2025, with strong organic revenue growth and significant expansion in Adjusted EBITDA and Adjusted Net Income. Despite a restructuring charge impacting GAAP net income, the company's underlying operational performance was strong, leading to record net cash flows from operating activities. The board's decision to increase the quarterly dividend by 11.5% signals confidence in future profitability and cash generation. Furthermore, the company provided a positive 2026 outlook, anticipating continued mid-single digit organic revenue growth and further Adjusted EBITDA margin improvement. The strategic sale of its Employee Health and Safety software business is expected to streamline operations and focus on core offerings, supporting long-term value creation.
At the time of this filing, ULS was trading at $72.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $14.3B. The 52-week trading range was $49.34 to $91.95. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.